New audit relief instrument requires deed changes for new companies
Existing deeds of cross guarantee (signed before the release of the new pro forma on 28 September 2016) do not necessarily need to be updated, however, ASIC has confirmed that, where parties wish to add a new entity to the group under the deed (so that it can obtain the audit relief), modification of the existing deed will be required by either:
- all parties executing a new deed in the form of the new ASIC pro forma, or
- varying the existing deed to reflect the new ASIC pro forma.
McCullough Robertson have been liaising directly with ASIC on these requirements and can assist with new pro forma and variation requirements. For groups whose financial year ends on 30 June, the new deed will need to be in place and any new entities added to the new deed before that time.